{"id":8604,"date":"2023-06-02T09:40:58","date_gmt":"2023-06-02T09:40:58","guid":{"rendered":"https:\/\/dpoassociates.eu\/blockchain-technology-and-the-gdpr-compatible\/"},"modified":"2024-07-04T11:30:47","modified_gmt":"2024-07-04T11:30:47","slug":"blockchain-technology-and-the-gdpr-compatible","status":"publish","type":"post","link":"https:\/\/dpoassociates.eu\/en\/blockchain-technology-and-the-gdpr-compatible\/","title":{"rendered":"Blockchain technology and the GDPR: compatible?"},"content":{"rendered":"\t\t
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In this blog, we will briefly explain what blockchain technology is<\/span> and<\/span> how<\/span> it <\/span>itself<\/span> relates to certain aspects of the GDPR. Specifically, the rights of <\/span>the <\/span>stakeholders in the blockchain are adequately safeguarded<\/span>.<\/span><\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is blockchain technology? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Blockchain technology is a decentralized, transparent data acquisition and distribution system in which every new entry is immediately visible on every copy of “the ledger” or ledger. <\/span><\/p>\n

One speaks of a ledger when one starts shaping data in such a way that it contains an entire history of data. The authenticity of each submission is guaranteed by a sophisticated consensus system. <\/span><\/p>\n

The data recorded cannot be changed because this data also exists in billions of other copies of the ledger. <\/span> <\/span><\/p>\n

Blockchain uses a combination of data encryption and distribution to ensure that every transaction in the ledger is verified and visible to others. <\/span><\/p>\n

No matter who sees it, the ledger always shows the same thing: a transparent set of data. And blockchain is essentially <\/span>a decentralized register of data that is constantly updated so that everyone viewing the blockchain sees the exact same data, at the exact same time. <\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How does blockchain work? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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A blockchain functions by capturing a timestamped transaction, producing an encrypted digital signature and using the network’s computing power to verify the encrypted signature. <\/span><\/p>\n

Verification is done by “proof of work,” in which a computer must solve a complex problem.<\/span> <\/span><\/p>\n

Each block is connected to a previous block in a chain by a hypercomplex mathematical process related to the data in a previous block. <\/span><\/p>\n

The “hash” of the previous block is included in the new block, along with a record of all the last transactions performed since the last block was added (usually minutes or hours before). <\/span><\/p>\n

Other computers in the blockchain check the correctness of the hash and verify the validity of the new block.<\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Blockchain and Bitcoin <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Blockchain<\/a> is a very important technology in the world of Bitcoins. <\/span><\/p>\n

The fact is that the transactions of Bitcoin, a crypto currency, are recorded using blockchain technology. <\/span><\/p>\n

Without the existence of Blockchain technology, the use of Bitcoins would never have been possible. <\/span><\/p>\n

Indeed, the technology is designed to preserve the integrity of the crypto currency.<\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The blockchain technology and our data <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Thus, with a Blockchain, all transaction data, such as the amount and beneficiary of a particular Bitcoin, for example, are permanently stored in a block. <\/span><\/p>\n

This uses data that has been previously stored in other blocks. Blockchain technology is essentially going to stack data as mutations are recorded in a chain, because of this it is basically not possible to delete data from previous blocks or change them. <\/span> <\/span><\/p>\n

From the moment personal data is processed in these Blockchains, GDPR legislation applies, think for example of the case where the name, address or certain financial data is stored in a “block.”<\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Issues:<\/em><\/h4>\n

The fact that some of this data is stored and essentially cannot be deleted is extremely problematic and runs counter to the <\/span>right to be forgotten, right to delete data and right to change data<\/span><\/b> set forth in Articles 12<\/a> and 17 of the GDPR<\/a>.<\/span><\/p>\n

Adding to this problem is the fact that the data is visible to anyone and at any time. <\/span><\/p>\n

This makes it virtually impossible for data subjects to exercise their right to be forgotten. <\/span><\/p>\n

In addition, it is also a certainty that personal data is stored for a much longer time than what is necessary and relevant for the purpose of processing.<\/span> <\/span><\/p>\n

This is not the only problem posed by the use of Blockchain technology. <\/span>In fact, Blockchain technology is usually used by people who do not know each other. <\/span><\/p>\n

This obviously makes it very difficult to designate a data controller and establish the necessary arrangements for compliance with GDPR regulations.<\/span> <\/span><\/p>\n

Article 4(<\/a> 7) of the GDPR states that the controller is the party that designates the purpose and means of processing personal data. <\/span> <\/span><\/p>\n

Private blockchain:<\/span><\/em><\/h4>\n

With a private blockchain, it is somewhat easier to designate the responsible party since the blockchain participants are more clearly designated. With a public blockchain, as already cited, this is a tricky one.<\/span><\/p>\n

Indeed, the decentralized nature of a public blockchain means that a third party is completely unnecessary.<\/span> <\/span><\/p>\n

In this way, the current practices of Blockchain technology could seriously disrupt sectors such as finance, healthcare and cybersecurity.<\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\n\t\t\t\t\tConclusion<\/span>\n\t\t\t\t<\/span>\n\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Blockchain technology is still evolving to this day, with data protection remaining a huge stumbling block. <\/span><\/p>\n

The GDPR aims to provide data subjects with greater security and control over their personal data. <\/span><\/p>\n

Blockchain technology in its current state offers data subjects anything but protection of their personal data. <\/span><\/p>\n

Indeed, there is a great risk for data subjects to lose control over their own personal data in the blockchain.<\/span> <\/span><\/p>\n

Either way, the right to data protection within blockchain technology requires a concrete solution and, looking to the future, creates complex legal challenges.<\/span> <\/span><\/p>\n

For more information regarding Blockchain technology and applications of the GDPR, you can always contact an accredited<\/span>
\n DPO.<\/span>
\n<\/a><\/span> <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tAppoint DPO<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

In this blog, we will briefly explain what blockchain technology is and how it itself relates to certain aspects of the GDPR. […]<\/p>\n","protected":false},"author":1,"featured_media":8561,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[84,105],"tags":[],"class_list":["post-8604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-news-articles-gdpr"],"yoast_head":"\nBlockchain technology and the GDPR: compatible? - DPO Associates<\/title>\n<meta name=\"description\" content=\"Find out how blockchain technology can help with GDPR compliance. Learn how the decentralized nature of blockchain can protect personal data while improving data processing transparency\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dpoassociates.eu\/en\/blockchain-technology-and-the-gdpr-compatible\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blockchain technology and the GDPR: compatible?\" \/>\n<meta property=\"og:description\" content=\"Find out how blockchain technology can help with GDPR compliance. 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